Australian flat product steel producer BlueScope posted a net loss of $97mn in financial year 2020 (July 1,2019 to June 30, 2020), down by 90pc from $1,016 in the prior period on the back of government mandated shutdowns leading to production disruptions and outages.
On underlying basis, the company’s net profit declined by 63pc to $353mn in FY2020 from $966.3mn in the prior year. Company’s underlying EBIT for the year declined by 58pc to $564mn from $1.35bn. The decline in EBITDA was due to shutdown of major US carmakers for two months and a weaker steel market during the year.
BlueScope’s sales revenue stood at $11,284.4mn, down by 10pc from $12,545.6mn in FY2019, while steel despatches dropped by 5pc.
At the beginning of H1FY2021, the company’s lagged steel spreads in North America and Asia are narrower than H2FY2020, while orders in Australia remain stable and North Star is dispatching near full capacity. In the light of COVID-19 related uncertainties, the steelmakers cited that it would not provide EBIT guidance for H1 of FY2021.